| dc.description.abstract | The study sought to investigate and document changes made in the marketing mix by
Petroleum (oil) firms as they operate in a liberalized environment. It was based on six oil
companies, which have operated in both pre-liberalized and liberalized periods.
The specific objectives of the study were; to determine whether oil firms have adjusted
their marketing mix to cope with the new environmental changes, to determine the nature
of these adjustments and to establish whether these firms are facing any new
changes/problems in their marketing activities as they operate in a liberalized market.
The study used primary data, which was collected by use of a questionnaire and the mode
of collection was by personal interviews. The data was obtained from all the six firms
forming the population of interest. It was then analyzed using descriptive statistics.
Findings of this study reveal that liberalization has led to a revolutionary change in the
way things used to be done in marketing petroleum products. All the petroleum firms
studied had to make changes in nearly all the elements of marketing mix in order to
remain competitive. They have become more market oriented and have come out of the
narrow sales or production focus. Consequently they became innovative and sought new
ways of approaching the changed environment, as the market is no longer the predictable
one they were used to before liberalization.
In view of the study's findings, a few recommendations have been made. Firstly,
companies should be more agile and continue adjusting their marketing mix to fully
exploit any existing opportunities - which may add more value to their operations and at
the same time be of benefit to the consumer/customer. Secondly, due to the existing stiff
competition in the industry, and the fact that petrol is a commodity which is not easy to
differentiate, companies should use quality of service to establish a competitive edge in
the market. Thirdly, since all the firms in the study are members of the newly formed
Petroleum Institute of East Africa, they should actively use this body to lobby to the
government to- ensure there exists an even playing field. Specifically, the government
should create a safe, healthy and environmentally acceptable petroleum industry, that is
based on professional standards, and the principles of a fair, level playing ground. It is
only when the market is like this that oil firms can derive maximum benefits from the
changes they make in the marketing mix. | en |
